This insane chart shows just how many ordinary Chinese are caught up in the stock-market crash

Stock-market investing in Britain is done mainly by professionals
such as fund managers, folks trusted with other people's money
because of their increased understanding of investing. It's the
same way in the US, though Americans are more likely than Brits
to maintain a small portfolio of stocks in which they have a
personal interest.

But millions of ordinary citizens in China have accounts to buy
company stock directly, and that's causing big problems for the
government now that
markets are nosediving.

There are an estimated 90 million "retail" investors in China —
normal folks who own shares. Credit Suisse reckons an incredible
80% of urban Chinese households have invested in equity, putting
about 30% of their collective cash into stocks.

Credit Suisse has a great chart that puts in context just how
huge all of this exposure is. The bank says about 258 million
stock-trading accounts are open on the Shanghai and Shenzhen
exchanges, China's two major ones. A high proportion of those are
likely to be retail investors, with a third of the total opened
in just the past nine months.

As you can see below, that dwarfs the population of most Asian
countries and is over 80% of the US population.

Ordinary people have borrowed money to buy shares. A dip in
prices has led to lenders asking for more cash to cover losses.
That is forcing retail investors to sell shares to raise cash,
and the rush of sellers is pushing down prices.

As for why the Chinese government is so worried, it obviously
doesn't want millions of its citizens to be angry about losing
money. Credit Suisse warned this week that the crisis could
risk "social stability" in the country if it isn't resolved
quickly. CS analyst Dong Tao says "some homeowners mortgaged
their house to invest in stocks."

And the collapse is showing up the government. Here's Credit
Suisse: "The market weakness also undermines President Xi
Jinping's reform plans and anti-corruption campaign. Premier Li
Keqiang expressed his strong preference for having 'one big shot'
at stopping the panic after he returned from a European trip."